Massive Hack Hits Sui Blockchain’s Largest DEX, Over $200M Drained

A major security breach has struck Cetus, the largest decentralized exchange (DEX) and liquidity provider on the Sui blockchain, resulting in losses estimated between $200 million and $260 million. The incident, which unfolded on May 22, 2025, has sent shockwaves through the Sui ecosystem and raised urgent questions about the safety of user funds and the future of decentralized finance (DeFi) on the network.

Details of the Attack

• The attacker exploited vulnerabilities in Cetus’ smart contracts, using fake or spoof tokens to manipulate price curves and reserve calculations within the protocol. By introducing worthless tokens, the hacker was able to trick the DEX into releasing valuable assets, effectively draining its liquidity pools.
• Blockchain monitoring tools reported that at least $63 million was quickly bridged to Ethereum, with a single transaction moving 20,000 ETH to a fresh wallet. On-chain data shows the attacker’s wallet currently holds over 12.9 million SUI, valued at approximately $54 million, and has a net worth exceeding 32.9 million SUI (about $137 million), suggesting the attacker has already begun obfuscating the trail of stolen funds.
• Cetus processed a staggering $2.9 billion in transactions on May 22, a dramatic spike from $320 million the previous day, likely reflecting the rapid siphoning of assets during the exploit.

Impact on Sui Ecosystem

• The hack caused the value of several Sui-based tokens to plummet, with some tokens crashing by over 80% as liquidity pools emptied. The USDC stablecoin on Sui even depegged to zero following the attack.
• Cetus’ total assets dropped by 84% in a single day, falling to $38 million, while the total value locked in Sui’s DeFi ecosystem plunged by over $330 million.
• Trading on Cetus was halted as the protocol paused its smart contracts to prevent further losses and began investigating the incident.

Market Reaction and Broader Implications

• Despite the scale of the breach, $SUI, the native token of the Sui blockchain, was trading with a modest 2.4% increase, lagging behind other major cryptocurrencies like $AVAX and $NEAR, which posted stronger gains. This relative underperformance underscores market uncertainty following the hack.
• Some analysts remain cautiously optimistic about $SUI’s price trajectory, noting its recent consolidation and the possibility of breaking resistance levels if positive momentum returns.
• The incident has sparked criticism over the lack of mainstream news coverage, with some in the crypto community alleging institutional bias in reporting on blockchain security incidents.

Next Steps and Ongoing Investigation

Cetus has stated that it is working closely with the Sui Foundation and blockchain security firms to recover stolen funds and address the vulnerabilities exploited in the attack. The protocol has promised a detailed statement as investigations continue, but the immediate priority remains safeguarding remaining user assets and restoring confidence in the Sui DeFi ecosystem.

As the Sui community grapples with the aftermath, the hack stands as one of the largest DeFi exploits to date and a stark reminder of the persistent security challenges facing decentralized protocols.